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negotiations. now. he's back to face new battles over spending cuts and raising the country's debt ceiling. the president could also announce nominees for key positions in his cabinet as soon as tomorrow. with the fiscal cliff beginning to fade from the minds of many americans a new fight is heating up on capitol hill. a new deal over the debt ceiling is looming in the not-so-distant future. we go now to elizabeth corridan to check up on both sides and how they're preparing to get a new deal in place. >> "i believe we need to raise the debt ceiling, but if we don't raise it without a plan to get out of debt, all of us should be fired." >> reporter: strong words for a new congress, the new years deadline for the so-called "fiscal cliff" has come and gone. now lawmakers start a new session under pressure to avert another financial crisis -- this time over raising the debt ceiling. if an agreement isn't reached by late february or early march, the united states risks defaulting on its financial obligations. the argument this time around will be over how much congress will agree to cut spendin

will begin a couple of months from now, probably in late february, early march, when we hit the debt ceiling and when the automatic spending cuts come into play again, and either have to be replaced with other spending cuts, or again, kicked down the road. >> reporter: these are the same issues that snarled congress in the summer of 2011, and again during the fiscal cliff debate. there's little hope for a better outcome this year. president obama has promised not to negotiate with the new congress on raising the debt ceiling, but republicans are ready to use it to force major federal spending reforms and tame the national debt. right now, the u.s. owes $16 trillion, but some calculate our total liabilities much higher. and as congress jumps from small deal to small deal as they have been, analysts worry big problems are just getting bigger. >> $60 trillion is a conservative estimate of our unfunded liabilities of medicare social security, and medicaid put together. that's scary. and, the fact of the problem of $2 trillion solutions to $60 trillion problems, you see the occasion of the lack o

march, when we hit the debt ceiling and when the automatic spending cuts come into play again and either have to be replaced with other spending cuts, or again, kicked down the road. >> reporter: these are the same issues that snarled congress in the summer of 2011, and again during the fiscal cliff debate. there's little hope for a better outcome this year. president obama has promised not to negotiate with the new congress on raising the debt ceiling, but republicans are ready to use it to force major federal spending reforms and tame the national debt. right now, the u.s. owes $16 trillion, but some calculate our total liabilities much higher. and as congress jumps from small deal to small deal as they have been, analysts worry big problems are just getting bigger. >> $60 trillion is a conservative estimate of our unfunded liabilities of medicare social security, and medicaid put together. that's scary. that's scary. and, the fact of the problem of $2 trillion solutions to $60 $2 trillion solutions to $60 trillion problems, you see the occasion of the lack of problem and resolve of

to cut spending. >> this is more like a debt ceiling thing. >> stephanie: again. as i was saying, what eye candy for the gals to have mitch mcconnell on every sunday show. no matter where you turn, that was -- [ screaming ] okay. this sunlight hits your television just right and reflects off his glasses things can burst into flames. you need to be careful. mike in pittsburgh writes steph -- >> he's a fire starter. he did start the fire. >> stephanie: yeah, well we didn't. dear steph i keep listening to the criticism of the fiscal cliff, not getting the $250,000 limit. here's a factoid for you. in 1939, president clinton enacted the tax rate on incomes over $250,000. now, the i.r.s. and today adjusted for inflation his $250,000 is $397,000 which is exactly what the president got. president obama got the same deal president clinton got back then. i would say the country did pretty good. >> that's just kenyan voodoo. [ ding ding ] [ applause ] >> stephanie: all right. isn't it just like -- it's like an acid flashback or like a flintstones cartoon background. here we go again. >> the same

to president obama urging him to do whatever he can to sidestep congress and increase the debt ceiling. but he cannot legally or constitutionally do that. john boehner reacts by saying washington must stop spending money it doesn't have. >>> speaking of sequester spending cuts, defense department is gearing up, so is homeland security. and the tsa. did you get your paycheck today? notice something missing? the payroll tax holiday is over. will this middle class tax hike really damage the economy? "the kudlow report" begins right now. >>> first up tonight, a developing story. four democratic senators sent a letter to president obama late this afternoon. they want him to use any means necessary to raise the debt ceiling without republican house spending cuts. that's right. cnbc's eamon javers has the details. >> reporter: let me get right to exactly what that quartet of senators said. in their letter to president obama which was viewed widely as shoring up his left flank in the political debate over the debt ceiling. what they wrote was "we believe you must be willing to take any lawful steps to

on things like raising the country's borrowing limit, the debt ceiling, and dealing with spending cuts that could include negotiations over programs like medicare. lester? >> all right, kelly, thanks. >>> one new member of congress, the junior senator from the state of maine, is already making a name for himself. tom brokaw is here tonight with more on a man who says he wants to do the people's business in a better way than we've seen lately. hi, tom. >> lester, we don't often think of maine and royalty in the same sentence. but tonight i am reporting on the king of maine. that would be angus king, near republican or democrat, officially independent. a former two-term governor, he promised a new approach. and it paid off. >> i do. >> my favorite line from the campaign is a guy up north who said "all my life i've wanted a chance to vote for none of the above and you're it." >> it's been difficult to envision this day when i would be saying farewell -- >> reporter: king is replacing olympia snow, a respected republican senator who quit in frustration over washington's deadlocked ways. >>

to raise the debt ceiling unless you give us something back which means you cut entitlements a little bit or you do this, that, and the other thing. what do you think is likely to happen there? >> well, that is really an unprecedented situation. you know, we have had the debt ceiling raised over 70 times in the last 50 years. congress has always dutifully done its job and raised the debt ceiling under divided congresses and divide government. democrats and congress raised the debt ceiling 12 times for president reagan upon his request. what's unprecedentside that we have never seen congress try to use the debt ceiling as a tool of negotiation. that violates. >> bill: we have a frightening amount of debt now. $16.5 trillion. and i gave you the stats up top about president obama's spending more than every other president combined. so that it's a different situation than it was under ronald reagan. now, i understand that the president can't order congress to raise the debt. he can't do that by any order. buff he can ignore it it he can -- don't worry about it keep paying stuff off. is that t

in the debt ceiling we want a dollar in spending cuts. by the way, sequestration is a result of that same philosophy the last time we hit the debt ceiling. the republicans in congress at that time said that they wanted spending cuts to equal the amount of increase in the debt ceiling. congress could not agree on what specifically to cut for that full amount, so we came up with sequestration as a forcing function to make that happen. so these are, sequestration cuts are cuts leavitt over from the previous debt ceiling increase. now we're facing another moment where every to increase the debt ceils. if you want to increase the debt ceiling enough to give us about a year of operating time, that'd be about a trillion dollars. if you want to completely offset the cuts in sequestration with other deficit reduction, that'd be another trillion dollars. putting these two on the same timeline doubles the problem. i'm not confident congress can come up with another $2 trillion in deficit reduction by that deadline. let's keep in mind with the fiscal cliff, um, relative to what would have happened if

and the debt and debt ceiling and lots of discussion about that, budget cuts, spending cuts possibly coming up the top republican on the nature side they may not get to gun control until the spring. richard. >> a lot of political capital will be spent on those issues. thank you so much. >> more turbulence for boeing's dreamliner. a fuel leak on a 787 forced it to cancel takeoff and return to the gate. one day later, a different plane also at logan caught fire. it was empty at the time. united airlines, the only american airier to operate the dreamliner said it has ordered inspections of all of its 787s. it's not a serious problem given the high-tech plane but they warned it could still undermine consumer confidence. >>> the government is calling for an urgent review of the nation's arctic offshore drilling practices in the wake of a series of missteps voflg the shell oil company. this week's grounding of a shell oil rig off the coast of alaska is just the latest in a string of blunders zaents involving the company's ship and support equipment. the 60-day assessment could halt or scale back pla

will coincide with another debt ceiling battle. is there anything in this debacle that we can all agree on? >> house speaker john boehner had kind of a rough week here. the at a party folks not happy with the deal that he struck >> the president was able to get the speaker to undo everything he had promised he would do >> where are you? mr. speaker, we need leadership. >> tonight i am ashamed, shame on you, mr. speaker. >> jon: republican or democrat, senator or congressman, team edward or team jacob, everyone agrees john boehner sucks. at least we can be assured that as the incoming congress votes for a new speaker of the house, it's clear what the outcome is going to be. >> john boehner won re-election as house speaker today. >> jon: oh, boy. (train whistle blowing) we'll be right >> jon: welcome back to the show. listen. as you may recall, a couple months ago america was hit by two major disasters. one of them natural, hurricane sandy and one of them somewhat man made the republican majority in the house of representatives. the second of those disasters has made it impossible to clean u

are drawn in the battle over spending cuts and the debt ceiling. and then there is earning season. kicks off tomorrow with alcoa. >> banks in the spotlight this morning, bank of america settling with fannie mae with mortgages it underwrote during the housing boom. citi submitting to the feds. >> revising up, gdp forecast to 8-1, saying investing in the mass market stocks is the way to go. >> potential cuts at the magic kingdom reports disney's got internal cost-cutting review under way. >> the question of the day, can the new year rally continue. last week the s&p jumped 4.6% to a new five-year high. not only is wall street looking ahead to earnings season, beginning with alcoa tomorrow, but paying close attention to the battle over the debt ceiling and spending cuts. the big debate over whether more revenue increases should be on the table. >> the tax issue is finished, over, completed. that's behind us. now the question is, what are we going to do about the biggest problem confronting our country and our future. and that's our spending addiction. >> mitch mcconnell's going to draw that lin

is saying, if you are tying spending cuts to the debt ceiling, that's a discussion i am not going to have. mitch mcconnell is saying, with all due respect, you are going to have that debate because it's a debate that the country needs to have. mitch mcconnell threw down a marker saying the revenue piece is done. no new tax increases. all we are talking about is spending cuts. the president is looking for $600 billion in revenue, closing loopholes and limiting deductions on the richest americans. you can see, they are about to go like this and what are the consequences? >> the fiscalg issues may be sidetracked by the gun control debate. 10 bills were introduced in the house on thursday, none of which on the surface would have done anything to stop adam lanza from doing what he did in newtown. and then there is the white house study group led by vice-president biden, which looks like it's going to go for more legislation, reduce the assault weapons. but at the same time, look also at the issues of mental health and the societal impacts of violent video games and movies. charles krauthammer

and the speaker said that the president said that he n't going to have a debate with us over the debt ceiling. he also sayshat he's not going to cut spending along with a debt limit hik. fiscal cliff behind us on the focus turns to spending. speaker boehner cited a new poll, shwing 72% of americans agree with him. but any increase in the debt lit must be accompanied by an equal amount in spending cuts. senator john cornyn saying that if the president intends the president intends to carry through with his no negotiation threat, but a government shutdown may be the only way to find resolution. the new senate majority leader is saying that it may be necessary to partially shut down the government in order to secure the fiscal well-being of our country. the looming deadline for action has been obvious. and in every instance the white house has purposely blow up the process in a shameless attempt to score cheap political points. "the washington post" reported the top ally in the senate may not be fully on board with his approach his imperious stance, if you will. senator harry reid reportedly warned

and it is all about the looming fights in congress over the spending cuts and the debt ceiling, they'll make for a couple volatile months for the market in january and february, ashleigh. >> okay, alison, thanks very much. have a good weekend. >> you, too. ...so as you can see, geico's customer satisfaction is at 97%. mmmm tasty. and cut! very good. people are always asking me how we make these geico adverts. so we're taking you behind the scenes. this coffee cup, for example, is computer animated. it's not real. geico's customer satisfaction is quite real though. this computer-animated coffee tastes dreadful. geico. 15 minutes could save you 15 % or more on car insurance. someone get me a latte will ya, please? and i'm here to tell homeowners that are 62 and older about a great way to live a better retirement. it's called a reverse mortgage. [ male announcer ] call right now to receive your free dvd and booklet with no obligation. it answers questions like how a reverse mortgage works, how much you qualify for, the ways to receive your money, and more. plus, when you call now, you'll get th

ceiling to spending cuts if they haven't -- that they haven't gotten so far. they see it as an opening and going to happen at the end of february when the debt limit comes up along with mandatory reductions in spending. >>> the fiscal cliff tug-of-war ends with pork, a lot of it. >>> plus big brother on the bus? how many muni plans to keep a close eye on its riders in the coming year. >>> a new push to stop mass shootings and the stockpiling of ammo. our conversation with congresswoman nancy skinner coming up next. [ male announcer ] the distances aren't getting shorter. ♪ the trucks are going farther. the 2013 ram 1500 with best-in-class fuel economy. engineered to move heaven and earth. guts. glory. ram. the new ram 1500. >>> if you ride muni, get ready for your close-up. the agency is expanding its surveillance technology. cbs5 reporter mike sugerman on what that means for passengers. >> reporter: muni isn't usually the stuff of hollywood until it is. all 800 or so muni buses and several hundred trains are waiting to be changed so you can add your close-up or to help police figure

in on their agenda... old ver.but - problems. with the looming debt ceiling crisis, lawmmkers cut spending, which as proved not to be an asy task with partisan politics at ppay. the new year we'll focus on is seeing if we can put a paccage little bit less drama, a - little bit less brinksmanship. this coogresssincludes the fiist openlyygayyseeatorrann the first openly bi-sexual member from either chamber.it also ncludes a record number of women - 20 in tte senate and 81 in the house. the new congress is scheduled to vote todayy.. on aid foo viccims of superstorm sandy. the house is expected to billion-dollar measure... to pay for flood insurance claims. some lawmaaers say the mooey is urgently needed for storm victtms... who have been awaiting claim checkk sincc this was the scene thursday... as earry 4-hundred sandy hook sttdents resumed class.tte siteeof the shooting is still part of an ongoing investigation... so former middle school in nearby town was re-puuposed... and reeamed students a sense of familiarity... desks and otter oojects were bbought to their new school. a number of &pp

. that should be -- that's been banked. that's done, that was in return for the debt ceiling increase that we gave this president 17 months ago $2 trillion that he blew through in no time. i agree with you completely. that's why that sequester has to stay in place and we now have to have a discussion about how we achieve the savings if the president wants any further increase in the debt limit. i would suggest the way to do it is reforming one or more of the big entitlement programs. that's where we're going to really get on a sustainable path. but you're absolutely right, we can't count the existing sequester, which was put in place because of the last debt ceiling increase. we can't count that twice. >> sounds great. senator pat toomey, thank you very much for walking through that. we appreciate it. >>> now, joining us to get some reaction to senator toomey's views, we bring in chris lehain and tony fratto, former bush deputy press secretary. chris, let me just start with you. because this sounds like a technical point, but it's not. the debt ceiling increase we're talking about came suppos

the bejabers out of everybo everybody. >> in 2011 they raised the debt ceiling and promised to cut $1.2 trillion. guess what? they punted on that one. now they are one sequestration in arrears. they owe us two and we're not getting any. that's not shooting ourselves in the foot. it's shooting our children in the head. >> i would argue that they did the -- i would argue they absolutely did not do the right thing. they probably should have let things lie and started over for something bill bigger and more structural. if you look at the last two years, you've got a tax hike and delayed sequestration of spending cuts. >> right. >> so what did you get? you got a tax hike? i'm not sure that's in the best interest of the economy. >> we'll wrap this up. i'll give you a chance to take back that somewhat uncolorful statement that you just made. >> we don't think you meant it in any literal way. >> i think -- not a time -- >> i think our economic policies are suicidal for the country in the long run. >> okay, all right. thanks, everybody. >> there's a way to make a point and another way to make

the debt ceiling. republicans will not agree on taking on more debt without cuts on medicare, medicaid, and other social services. >> i think tax reform ought to be revenue neutral as it was back in the reagan years. we resolved that issue. with don't have this problem because we tax too little. we have it because we spend way, way too much. we settle the tax issue. the question is now can we address the single biggest threat to america's future. that's our excessive spending. >> some say this stand-up could be worse than the fiscal cliff fight. house minority leader nancy pelosi says the president should bypass the debate all together and sign the new debt ceiling into law. she told "face the nation" viewers that president has the 14th amendment on his side which states that the nation's debt shall always be paid. >>> po >>> pelosi met with hundreds of quaints and colleagues to talk about last year's chag lengs and accomplishments and this year's goals. in 2013 the democratic party will continue to focus on growing and supporting the middle class, she says. >> practice the strength in

was reelected speaker. with the looming debt ceiling crisis lawmakers have to figure out where to cut spending which has proved not to be an easy task with partisan politics at play. >> we have to be able to take back common ground. we all agree we've got to deal with the national debt. we've got to deal with our deficits. >> the president needs to show up early this time. the american people will not tolerate the kind of last minute crisis that we've seen again and again over the last four years. >> reporter: in washington i'm sandra nedo. >>> a familiar face returning to work to a round of applause today. senator mark kirk back for the first time since he suffered a debilitating stroke almost one year ago. vice president joe biden and senator joe manchin stood by the illinois republican as had he to use a four-pronged cane to climb those 45 steps to the capitol. senator kirk had to learn to walk again after that stroke. >>> d.c. delegate eleanor holmes norton is in her 11th term up on the hill and while she is facing the same legislative calendar as her colleagues, she's also focused on the

few months, lawmakers face a looming government shutdown and battle over the debt ceiling and automatic spending cuts. former republican congressman jim nussle says this new crop has a tough job. >> what just happened with the debt and the deficit and the taxes, that doesn't go away. >> reporter: democrats still control the senate. and republicans the house with the same leaders returning. >> we're sent here not to be something but to do something. [ applause ] >> reporter: kildee says he's up for the job. >> while it's daunting, this is what i'm ready for. i'm here to work. >> reporter: his first major vote will be friday when the house takes up part of the superstorm sandy relief package. danielle nottingham, cbs news, washington. >>> did you change something? >> drivers with one thing in common. how the dmv says they make our streets more deadly. >> is tuition going up all the time? why some california students might be able to pay a flat rate for a college degree. ,,,,,,,,,,,,,, driving. the research released todayy th shows men >>> here is something that may startle

the debt ceiling. make treasury -- >> unless there's real spending cuts, unless there's real structural reform -- >> even though this is about previous spending? you were a business consultant. it is hard to sit there looking backwards. this is money that's already been promised. >> we can cover the interest payments on that previous spending. what barack obama wants is more spending going forward in the future. and, frankly, he doesn't have much credibility on this. the senate voted four times when he was in the senate to raise the debt ceiling. he voted against it once. he couldn't be bothered to show up for it twice. >> i want to ask you something quick. apparently one of your professors at harvard is now a u.s. senator from massachusetts. elizabeth warren. tell me about her class. you were telling me interesting things off camera about her class. it was among the most rigorous you took. >> yes. elizabeth warren was my contract law professor on my first day in my first class at law school. she was a good professor. i learned the subject very well. probably not as well as others did r

want to say cut spending for what we do next, fine. you do not tie it the debt ceiling. >> should spending be tied to an increase on the debt limit? a tweet -- tom, arlington, texas, independent. caller: it is not so much what the government buys. it is how much the government pays for what they buys. . one common machine gun is $37 apiece. another is $47 apiece. i've thousand dollars apiece for assault rifles. maintenance cost of airplanes. who will pay that much money? host: how would you change things? caller: gets new vendors. more companies can manufacture stuff. nobody can build submarines for us other than general dynamics. they are building seven new destroyers at $7 billion apiece. host: what do you think about tying it to the limit in the debt limit increase? should we not increase the debt limit unless spending is curved? caller: yes, that would be prudent. >> cyndee wright in -- cindy writes in -- share your comments on twitter at http://twitter.com/cspanwj. stephen moore has a profile of house speaker john boehner in " the wall street journal." he writes -- randy, mic

and the spending cuts? >> well, i mean, i think the first up is the debt ceiling, and that's where you're now beginning to hear talk of, well, maybe we'll partially shut down the government. the president said i'm not -- i am not going to have a debate over whether we should borrow money to pay for what we've already spent. only he says to pay for what congress has already spent, and the republicans are saying, well, we're not going to raise that debt ceiling and allow the u.s. to borrow unless we get one for one. a dollar in the raised debt ceiling and a dollar in spending cuts, so i'm not sure where this is going. some republicans say, hey, we're going -- this is where we're going to get our spending cuts because they don't think they got any in the fiscal cliff plan that was just passed and this is where they want to make that stand. will all of them make it because it will need all republicans, particularly in the senate, to stick with that. so we'll see. it's another one of those, you know, games of chicken again. >> kind of getting tired of those, aren't you? >> me, too. need a new anal

entitlement. democrats will stand in their way, the gop will use the debt ceiling as a hammer to bang on the heads of democrats to try to get their way on cuts. if washington gets to march unscathed, there's a potential budget cliff to look for. the current bill funding most of the federal government runs out on march 27th. it will be four years since the last actual complete budget was signed into law. look for lawmakers to extend it again through another so-called continuing budget resolution. now this continues, we stand the possibility of another debt downgrade and higher borrowing tops. washington can't agree on anything except for last-minute tax deals after 518 days of grandstanding. this is no way to run the u.s. government. joining me is stephen moore, an anti-tax crusader and an editorial board member at "the wall street journal." let me start with you, president obama says the debt ceiling is nonnegotiable. but republicans in congress are going to use it as a negotiation tactic. you always say that government needs to get out of the way and let businesses grow. isn't not ra

and congress of bickering of the debt ceiling. how much do we cut security of a tweak of medicare. >> i do not have a crystal ball if i did not have a small island and have my own basketball team people under 4 ft. tall. >> we do not know what will happen the next days. >> we will check back with rob for winners and losers on wall street at 9:15 a.m.. >> right now is 6:48 a.m. and we are watching the weather. let us take a live look on van ness ave from our roof camera. we're getting a better look at things as the light is coming out. we will get with erica on the fall that is the big story and whether there is for to let us go to george. >> we're still tracking hot spots of interstate 80. even though progress is being made on clearing the crash. the back of continue to grow from el cortel drive. >> will continue to have a dense fog advisory for highway 4 in the antioch pittsburgh area. chp has not yet lifted advisory. that would affect traffic in both directions. it may be why we see a slower than usual east bound right. a new hot spots that is the problem here on the nimitz freeway. 880

that for every dollar increase in the debt ceiling, we want a dollar in spending cuts. sequestration is a result of that last -- of that philosophy the last time we hit the ceiling. they wanted spending cuts equal to the raise in that that ceiling. congress could not agree. that is why they came up with sequestration. sequestration cuts are cut left over from the previous debt ceiling increase. now we are facing another moment where the debt ceiling needs to be increased. if you want to increase it to give us a year of operating time, that would be about 3 trillion dollars. putting these on the same timeline doubles the problem. i'm not confident that congress can come up with another 2 trillion dollars in deficit reduction by that deadline. with the fiscal cliff, relative to what would have happened if all of those programs had been extended, what they ended up passing reduce the deficit by less than one trillion dollars. look at how hard that was to achieve. less than one trillion dollars. it we will raise the debt ceiling and offset sequestration, it will be twice as hard. i'm not confident c

, the same old same old. with multiple budget crises ahead like the debt ceiling and automatic spending cuts, the continuing budget resolution, the people who watch capitol hill say the partisanship and brinkmanship will be as bitter as ever. cnn's national political correspondent jim acosta explains why. >> reporter: after surviving a failed coup led by his own members beleaguered house speaker john boehner wants to take the same fractured party into battle. in a closed door meeting with house republicans a source in the room tells cnn boehner said he will demand budget cuts larger than any increase in the nation's debt limit. with the fiscal cliff behind us boehner told his members the focus turns to spending. that puts republicans in congress back on the collision course with the white house after the president insisted earlier this week he will not negotiate over the debt ceiling. >> i will not have another debate with this congress over whether or not they should pay the bills that they've already racked up through the laws that they passed. >> reporter: if the president won't come to t

spending cuts from the administration. those things are on the table, not just through the debt ceiling and through sequester and continuing resolution, i would hope the president put things on the table that he put on there in the summer of 2011 and more recently things like to change like looking at raising gradually rates of eligibility and means testing. there's really important structural changes that need to happen to give the country fiscal stability. but the aadministration will have to stand up to its own party and produce bold ideas and frankly be willing to work with republicans to get the job done. >> one thing i want to show everybody is politico having this front page profile, the hell no caucus, backed up by the conservative group the club for growth. congressman from arkansas cotton saying, that he would have voted both speaker boehner plan b on millionaires in the final tax hike and vowed to vote against raising debt limit in two months, absent the massive cuts the president opposes. he voted against gun control, immigration reform. how can they govern with so many memb

republicans he'll use the debt ceiling as leverage for spending cuts. who do you see as having the upper hand when it comes to raising the debt ceiling? >> you know, alex, this reminds me a lot of the government shutdown, the confrontation we had between president clinton and newt gingrich back in 1995 where they were at really loggerheads over spending issues and the government you may remember shut down for a total of 28 days, people forget how long that confrontation went on. what do we see what happened that time, advantaged the president. republicans really took it on the chin. the president had the bully pulpit, we see the president, president obama, already trying to make his case in the clip that you showed from his saturday radio address. he's trying to say these are debts we've already incurred and catastrophic consequences if we don't -- we don't -- we aren't seen as a nation that will pay its debts. so, we see that positioning coming out already. i think it's a lot like the fiscal cliff debate where the president has some natural advantages. >> all right, let's talk about republic

the urban institute, a conversation on the fiscal cliff agreement and what's ahead for the debt ceiling, automatic spending cuts and the deficit. live coverage gets started at 12 eastern. >> i think that that collectivization of the minds of america's founding fathers is particularly dangerous because, as i say so often in the book, they were not a collective unit. and presenting them as such tends to dramatically oversimplify the politics of the founding generation. and then it comes to be used as a big battering ram to beat people over the heads with in ways that i think are both historically incoherent and rhetorically unsound. >> michael austin on what he calls the deep historical flaws by conservative commentators. he shares his views with george washington associate professor of law david fontana on booktv's "after words" sunday at 9 p.m. and midnight eastern on c-span2. >> now, homeland security and state department officials testify about potential abuse of refugee programs by terrorists. the testimony includes a case where two iraqi nationals were given refugee status in the u.

potential default. the whole debt ceiling business. the domestic and defense cuts postpone for two months by the fiscal cliff deal kick in. also known as sequester around these parts. of course, march 27th, the big the continuing resolution that funds the entire government expires. that may be where things truly heat up. mitch mcconnell drew a line in the sand saying though republicans are willing to work on tax reform as part of upcoming budget negotiations, new tax revenue is, "absolutely off the table." >> we've resolved the tax issue now. it's over, it's behind us. >> the tax issue is over. >> the tax issue is over, finished, completed. >> that may be mcconnell's view and not the view from the white house or democrats. they say new revenue is needed, mainly by scaling back tax breaks for the welty. >> these loopholes where people can park their money on some island off shore and not pay taxes, these are things that need to be closed. we can do that and use the money to reduce the deficit. >> is that done now? is the revenue side of it taken care of yet? >> no, no. >> if mitch mcconnel

. >> the debt ceiling wants a blank check cut to him. he would make it so that he could say whatever he want and there were no limits on the debt. he set this matter up. >> under the constitution, only the congress can send money. the senator and colleagues voted for the debt and we must pay it. the president is exactly right. it should be non-negotiateiable to pay the lebts. that should be nonnegotiable. >> congress and the house and the senate have been raising the debt ceiling according to the law to keep it going. dozens and dozens of times. we had no debt ceiling. >> congress every few years, every two or years was forced to raise the debt. last time it was a big deal. >> it has been for a while now. even president obama voted against raising the debt. >> that was shameful. he now said he regrets that. i'm with you. he should have never cast that vote. america must pay its bills. those are not obama's debts. >> if the president holds to what he is saying, i am not negotiating and the republicans are not going to raise it unless we come up with spending cuts equal to the debt ceiling. wh

that debate on the debt ceiling in the next month. you don't think we're going to see any spending cuts? >> we have been inculcated throughout our history that they will increase the debt ceiling without ever addressing the real problem which is, correct, 100%, maria, it is spending. >> unless the market forces the hand, too, because one thing our leaders do respond to is the stock market, whereas in the early '80s it was the bond vigilantes that ruled the root i think these guys get terrified when the stock market starts going down because they -- you know, from the way they calibrate things, you don't have bonds to do it so now you have the stock market. >> if you get money supply growing at 12% and bonds are in the biggest bubble in the history of mankind, the money is going to go into stocks. that's the path of least resistance. >> maria, what you have to watch very carefully, you have a dance going on and you brought this up that's a very good point. the fundamentals in a lot of ways don't support the equity market moving forward as strongly as it is right now. >> right. >> but in a way i

't think congress wants to cut, except for maybe a handful. then you have the debt ceiling bill which runs smack into a government shutdown potential. those are the -- those are the big issues coming up in january and february. what do you want boehner to do? is it right for your and caucus that boehner stay out of the negotiations with obama? that's what he pledged. he wanted to pick up conservative votes as bob costa said. is that what you want him to do? >> well, that's his decision. what i want to make sure we do is if he does go into negotiations, this is critical for any negotiation, you have to be willing to walk away from the table. and then you can start moving things in a more conservative direction. and we can start controlling spending. look, we can raise the debt ceiling, not raise the debt ceiling. our credit rating will get downgraded. what we have to do if we want to do the right thing for our country is control spending that's what i ran on. that's what i'm intending to do representing the first district of oklahoma. >> all right. how about no more tax hikes in the house?

leaders still clearly prepared to use the debt ceiling as leverage, nancy pelosi explained what she would do if she were in president obama's shoes. >> why do we go through this kind of exercise that embarrass everyone. >> ask the republicans. we always passed the debt ceiling when president bush was president. there should be -- this is a conversation where there should be no doubt. in fact, if i were president, i would use the 14th amendment which says that united states will always be -- >> you would go ahead and do it. >> but the congress hasn't incurred much of this debt. >> more on the president's big january agenda the white house is considering comprehensive plans to crack down on gun violence. three weeks after the sandy hook shootings in newtown, connecticut, the task force is looking at wide-ranging measures. the group is exploring ways to strengthen mental health checks. >>> in some cases the potential measures could be implemented through executive action. >> i think what we need to do first is to see what the vice president's group comes up with, what their recommendations a

cuts, the debt ceiling, and a continuing resolution to fund the government. there are also two pieces of legislation that embarrassingly congress dropped the ball on last year are, relief for victims of hurricane sandy and renewal of the violence against women act. there is the farm bill that sets farm subsidies and food aid for the poor. there is postal reform, as the usps hemorrhaging $25 million a day and may need a bail-out, and the pie in the sky, the if only they could get their act together and actually do something wish list items, meaningful changes to the nation's gun laws and immigration reform, which the 11 million undocumented workers in this country are counting on. more than just a full plate, this is a jam packed enchilada of responsibility. joining us now from washington is the sade of capitol hill, boat shoe enthusiast and my celebrity dopplerleganger, nbc's luke russert. a man, i will say, who does not really take a vacation, luke. you have been in the trenches this whole holiday season, my friend. >> yeah, but thankfully the united states congress, the 113th got of

is going to be rough, and because of things that we talked about before with the debt ceiling negotiations and the sequestration cuts and also a bumping earnings season, alcoa is nothing to brag about, and then we get through that and go through the end of the year and i think gains are backloaded. that was goldman's position. >> makes sense. what's your take on the third quarter, typically good because you've got the holiday spending but certainly a different kind of quarter with the dysfunction and the fiscal cliff and the uncertainty over the economy? >> when we saw the third quarter be reported, we saw a huge buildup of inventory in almost every region of the world. everything ranging from commodities, to industrial equipment, to autos so fourth quarter, some of that inventory got worked through, but it probably has kept the profits down, maybe the margins are not going to be able to recover as quickly, and i think that's creating a little bit of risk to the current quarter. >> all right. gentlemen, thanks very much. great conversation. appreciate your time. let's get to bob pisani who

with congress that are coming up, including the battles over the debt ceiling and those pending budget cuts. if confirmed, you'll be seeing a lot more of this. that is jack lew's looping signature on every new green back that is printed. it's been described as a slinky that lost its spring. lew says he'll make his name more legible if he does get the job. >>> and vice president joe biden meets with the nra today as the debate over gun violence intensifies. it could be a tough sell since the group already says it opposes any new restrictions. among those speaking out is new york's governor. andrew cuomo is urging lawmakers in his state to close loopholes on the state's assault weapons ban. >> this is not taking away people's guns. i own a gun. i own a remington shotgun. i've hunted. i've shot. that's not what this is about. it is about ending the unnecessary risk of high capacity assault rifles. that's what this is about. >> he was quite fired up today. yesterday rather. results of a new study are sure to fuel the already intense debate over guns. the u.s. sees far more violent deaths than a

to use the debt ceiling fight to get the spending cuts he wants. >>> also, a few days late, but the house finally voted for aid to hurricane sandy victims. you'd think a no-brainer. but they promised to punish members for approving the aid and 67% of house republicans voted no. we're going to ask an opponent of aid to confirm that one. now the senate is looking for inappropriate access. leave it to vice president joe biden. >> hey, mom. how are you? >> good to see you. i'm joe biden. >> his glad handing yesterday has drawn snickers from critics, but let's praise the vice president for showing the world how to get it done. for being a pa. >>> finally, michelle bachmann. we begin with the republicans threatening to shut down the government if they don't get the spending cuts they won.

up for the debt ceiling battle. >> and balanced plan that would cut spending in a responsible way. it always asks the wealthiest americans to pay a little more. and above all, protects our middle class and everyone striving to get into the middle class. >> he promise add fair chance for the milling class, but under the new deal middle class workers will take a bigger percentage hit on their paycheck. charlie gasparino on the impact the fiscal cliff deal will have on every american. >>> plus, he was 11 years old and hungry when he asked her for money on the street. she didn't give him money but something much more valuable that has lasted more than 25 years. ladies and gentlemen, governor mike huckabee. [applause] >> thank you very much. a great audience for this new year. and happy new year to you. welcome to huckabee from the fox news studios in new york city. well, it is hard for me to come up with a proper superlative to express the disgust i got with president obama and the congress. the gamesmanship and stagecraft that they substituted for statesmanship by rushing through a l

that they will not approve an increase to the debt ceiling, basically our credit limit, without some spending cuts. but a group of democrats have now sent a letter to president obama arguing that he doesn't really need the republicans to say okay to raising the debt ceiling, he can do it himself and if the republicans don't like it, they can take him to court. brit hume is our fox news senior political analyst, brit, so the democrats want president obama to say, if the republicans say you're not getting your debt ceiling increase unless you give us spending cuts, they want president obama to turn around and say i'm not giving them to you and if you refuse to raise the debt ceiling i'm just going to do it, if you don't like it, sue me. is this likely? >> well, i don't think it's a likely outcome and i think if it ever came to that that the president would almost certainly lose some of his administration's lawyers have said as much. and basically what it comes down to, there's a passage in the 14th amendment to the constitution that says the validity of the nation's public debt shall not be question

for many cuts as a part of the deal on the debt ceiling but the president himself has said he's not going to negotiate it also is going to put republicans in a tough position. if they want to push in the present won't play ball they will end up satisfying the activists and not getting a deal so they will have to craft a real strategy perhaps a better strategy than they had on the clip deal. >> host: texas, independent line, robert your next. >> caller: yeah, we are not seeing a republic president for another 11 or 12 years. obama has to finish out his term and hillary is going to take another eight years. rubio will help for the republicans but he is cuban and the latinos are not going to go for mexicans and latinos. you have to remember the cubans had kennedy and the russians and all that. the latinos will not follow you as they would a real latino. >> host: what was your first about speaker boehner? >> caller: he needs to have a republican presidents to have any help. >> guest: it's a very fair point. one of the real problems right t right now is in the republican party and even within

and the need to raise the nation's debt ceiling. >> brown: still to come on the "newshour" tonight: weighing the fiscal cliff deal; charges in the india gang rape case; the country's crumbling sewage system and an expanding american reach for al jazeera. but first, the other news of the day. here's hari sreenivasan. >> sreenivasan: for another member of congress, today marked an especially momentous return to work. republican senator mark kirk of illinois suffered a stroke 10 months ago, and had to learn how to walk again. today, he climbed the 45 steps of the capitol, with vice president biden and west virginia senator joe manchin on hand for support. secretary of state hillary clinton will return to work at the state department sometime next week. clinton was discharged yesterday from a new york hospital, where she had been treated for a blood clot in her head. a state department spokeswoman said clinton is now resting at her home in new york, but wants to get back to washington. >> some of the senior staff who spoke to her half an hour ago said that she's sounding >> some of the senior st

one of the sandy relief package today. >> but with the debt ceiling and deep spending cuts looming and a budget crisis coming up, will congress get more done than its predecessor? steve la tourette, chair of a republican advocacy group. he was a republican senator from ohio. you get the sense he's glad to be gone. >> i didn't think this is what retirement looked like, though. >> i have to start out by asking, yesterday a rather interesting day on the house floor. former colleagues re-elected speaker boehner as speaker of the house. there were a number of members, more than 10, who either didn't vote or voted against him. what do you make of the statement they were delivering? what do you think they were saying? >> it is not horribly unusual, it's the fourth time it's happened in my time here in washington. the first one with newt gingrich and then nancy pelosi lost some of her members and jim trafficant voted for dennis hastert. it's really not a good way to start your career. >> you talk about how you weren't expecting retirement to look like this, congressman. let me point out th

ceiling. we have yet to cut one dime from the last debt ceiling agreement and here it is time to do it again. we've got to stop the madness. . . living with moderate to severe rheumatoid arthritis means living with pain. it could also mean living with joint damage. help relieve the pain and stop the damage with humira, adalimumab. for many adults with moderate to severe ra, humira is clinically proven to help relieve pain and stop joi damage. so you can treat more than just the pain. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worseng heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if youhave had, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you hav

and some republicans won't raise the debt ceiling without getting their spending cuts. the coin may be a big fat joke but it's not about the coin when you think of this, it's reflectiveysfunctional it is on capitol hill, they're creating a magic coin to solve the u.s. debt crisis? come on. >> i'd like to have my own personal trillion-dollar coin to pay off all my debts no matter what anyone else says. >> print your face on it, right? >> no, i want your face on it. >> okay, deal. >> thank you, alison. >>> her life was cut short more than a year ago, now the uk has opened a second probe into the death of amy winehouse. we'll head to london for a life report. hi. i'm henry winkler. and i'm here to tell homeowners that are 62 and older about a great way to live a better retirement. it's called a reverse mortgage. [ male announcer ] call right now to receive your free dvd and booklet with no obligation. it answers questions like how a reverse mortgage works, how much you qualify for, the ways to receive your money, and more. plus, when you call now, you'll get this magnifier with l.e.d.

ceiling. the convention of the last two or three decades has been to use the debt ceiling as a tool to get serious about cutting spending. >> mohammed el ari is the ceo of pimco, one of the largest investors in bonlds. president obama appointed him to chair the global development council. congratulations on that. businesses and markets want certainty in the economy in order to invest and hopefully promote growth. we've averted the fiscal cliff barely but have three more potential cliffs awaiting. america's economy has been slowly picking up steam. could washington damage america's economic prospectings with the way these things are being done? >> yes, it could damage and has been damaging because we've been growing below potential. as you point out and as stephen said and i agree, we have yet another drama coming up in the next few weeks because we have to deal with the three issues -- debt ceiling, sequester, and continuing resolution. if someone wants to pleau a whistle and say time-out, everybody, let's step back and see what we're doing, all of us would conclude, democrats and republic

the immediate task of negotiating with republicans on raising the national debt ceiling, and agreeing on major spending cuts. some republicans have complained that lew has been unyielding in past negotiations. but the president said today: >> over the years he's built a reputation as a master of policy who can work with members of both parties and forge principled compromises. >> brown: the announcement came a day after labor secretary hilda solis announced she's stepping down after four years on the job. solis was the first hispanic woman to serve in a top cabinet position. and, she's the latest of several high-profile women to depart, including secretary of state hillary clinton and lisa jackson, administrator of the environmental protection agency. along with the president's earlier nominations-- for state, the pentagon and the c.i.a.-- that's raised questions about a loss of diversity in the cabinet. but yesterday, white house spokesman jay carney said the president's record on diversity should speak for itself. >> i mean, the increase in the representation of women in senior positions is

the debt ceiling as leverage for more spending cuts. insiders on capitol hill have been told to prepare for chuck hag hagel's nomination for defense secretary. at the same time, a white house spokesperson says the president has not made a final decision yet. congress passed a hurricane sandy relief bill that provides 9.7 billion to the national flood insurance program, nearly out of money, republican leadership took heat from both parties. the house is set to vote on additional sandy aid. worth nearly $52 billion on january 15th. the senate is recessed until the 21st. >>> president obama and the fi

in the budget control act. >> reporter: raising the debt ceiling in the next few weeks will be another showdown. house speaker boehner told the republican conference friday he'll use that as leverage for more spending cuts. >> that will definitely be a battle between house speaker boehner and president obama. president obama has already said he's not getting into that debate. jennifer johnson, capitol hill, news4. >>> a water-rich meteorite helped researchers prove that there could be life on mars. the rock, which was formed 2.1 billion years ago has ten times more water than any other martian meteorite. it's been nicknamed black butty and weigh being 11 ounces. >>> the parking lout -- that shows you the tail gaiters there, four hours before the game. this week will be a great day. if you're thinking about heads out this evening, you will need the colts. it's been blowing toward the north all day long, but starting to move into the rest of the region. we're starting to see windchills really dropping. 46 was the high, above the average high of 43. that coming after a low of 27 this morning. the

and defense budgeting with various debt ceiling deals, averted sequestration or not averted sequestration, this is a very timely time to have this conversation and we are joined by m fantastic panel of experts to help us cut through confusion and pull back and look at some of the bigger, strategic questions that are out there. i'm joined by three folks here. michael o'hanlon, you're already met, senior fellow and director of research and foreign policy here a brookings where he specializes in defense strategy. one of the most important prolific voices and defense issues, rich and literally hundreds of op-eds, columns, and articles, including one to point to you up on foreign policy but said right now looking at defense budgets . we are joined by richard -- richard betts, one of the top thicker -- thinkers and teachers, professor and director of war and peace studies at columbia university. numerous books have garnered critical success including it was an award from the american science association for the best book of political science. also a key facilitator of a summer security studies

the debate and frame it in terms of we are willing to raise the debt ceiling if the president will work with us to address spending cuts, i think that's a winning political argument. >> i think it's very interesting. i am worning your take and the fact that the way that this deal was constructed over the cliff, the debt ceiling and the sequestration are bog going to happen around the same time. to me, that sets the stage -- finally -- and this is the optimist, for a big deal that takes care of both of those things. am i naive or can you imagine a scenario where the deal is done and our major fiscal issues are solved with one, big bargain? >> i feel like i am talking to john lennon. i want to imagine a perfect world where we can all win. you can protect the powerful and you can also protect the weak, protect the people. i want to see that happen. look, let's face facts. the $16 trillion debt we have right now -- we rescued the banks to the tune of more than $16 trillion. i am trying to find a way for us to both win together. i think there is a way for us to do that. but we have to put th

of spending cuts for every dollar the debt ceiling is raised and the white house making it clear their position, they're quote not going to negotiate on the death ceiling or held hostage. we're kind of at a stand still. >> greta: and i know you're reporter and comment, the idea that we're going to go broke in weeks, and no more money under stones and downgraded, and not able to meet our obligation, internationally and fact that the principals aren't talking and posturing is appalling. and any plans to, timothy geithner is going to be leaving before this is resolved as secretary? >> looks that way, looks like very soon to be an announcement, jack lew chief of staff to president obama will be replacing timothy geithner and today, my colleague and i were reporting on a story where wall street's pretty much fine with that although they view geithner as something of an ally and lew as something of an unknown to geithner they feel that overall policy is going to be the same. lew and geithner were pretty much toeing the same line debt ceiling and budget negotiation including the fiscal

in medicare, medicaid and other government programs. >> i believe we need to raise the debt ceiling, if we don't raise it without a plan to get out of debt, all of us should be fired. >> special treatments under the tax code which ought to be looked at carefully. >> tweaks to the tax code could save money. president obama says he's willing to consider spending cuts separately, but will not bargain over the government's bargaining authorities. >>> so syria now, where the president outlined a road map for peace today, as fighting in the country continued. the u.n. says more than 60,000 people have been killed since the crisis began march 2011. stephanie gosk has more. >> syrian president bashar al assad addressed his country for the first time since june. he's very rarely seen in public. he was greeted by a packed and boifterrous oust tore yum. he blamed the crisis in syria on terrorists, including al qaeda and the countries that continue to fund them. there was little to no mention of the syrians themselves and have picked up arms against the government. assad also proposed a new political init

if the debt ceiling is raised without comparable spending cuts. the physical cliff was 41-1. i will not vote again in this country if it comes up to that. guest: do not give up on voting. is one thing -- that is one thing i beg you n

that. sequester is terrible, terrible program cuts. but it's a lot less horrible than the debt ceiling. so any time you're thinking that you have to bargain over that, you are bargain around that and the president can stand firmer on that than he could, i think, on the debt ceiling crisis. so i think his strategy of saying i'm not going to negotiate with you on that is paying off. >> now, jared, it was interesting to me when newt gingrich who did close government in the '90s, newt gingrich predicted that the republicans were in on this. watch this. >> everybody's now talking here comes the debt ceiling. i think that's frankly a dead loser. because in the end you know it's going to happen. the whole financial system is going to say this will be a gigantic problem. you can't be responsible. and they'll cave. >> when you have newt gingrich saying they'll cave. and newt gingrich did this, i mean, you really have to question how the republicans even took this long to start equivocating on what they're going to do. >> i think everything that you've played so far and joan's comments are convi

uncertainty is number one. three more fiscal cliffs looming. the debt ceiling, massive spending cuts, the sequester, and a continuing budget resolution. also, the jobs recovery remains mediocre. only 155,000 jobs added to the economy. jobless rate is 7.8%. wages and incomes are barely budging, yet the prices of all kinds of things will be higher this year, notably grains, meat -- you can expect to pay 3% to 4% more for your cheeseburgers. mail, there will be a postal price up again. resident prices going up. and public transit. a lot of cities weighing higher costs to get to work. >> thanks again for the bummer of the news. brought to you by christine romans. >> home prices are rising. >> thank you, christine. it's always a joy to have you on the show. >> happy monday, soledad. >> still ahead on "starting point," president obama could face another battle in congress. tell you why some members of this new congress are already putting up a fight. next, politics to the max with former congress members connie and mary bono mack. >>> we've got john berman with a look at the day's top stor

, no consideration of gun laws it's all about cuts, we're holding up the government on the debt ceiling for the continuing resolution. i think we're going to have an even more difficult 113th 113th congress than the do-nothing 112th congress at that the 112th congress was the nader of congresses. not ralph. eric can't tore wanting to step up it's a shakespeareen type thing. >> cenk: congress has a 9% approval rating. head lice and cockroaches are more popular than congress. do you have a sense from your colleagues obviously you're a democratic you want to discuss gun control. twenty murdered kids, apparently as far as they're telling you didn't do it, they're not going to bring it up. a congresswoman getting shot in the head didn't do it. massacre after massacre didn't do it. is there any amount of murder and mayhem in this country that would actually push the republicans to schedule a vote on this in the house? >> i don't see it, because i really think the republican house membership and the caucus is so far out of touch it's not anything like republicans used to be that were an altern

to the right they must have lurched. and i just think they're worried, because if they pull up the debt ceiling as -- and they try to hold the president and the democrats hostage over the debt ceiling, the contrast is going to be well, what are you going to cut? are you going to put these deep cuts in the medicare? are you going to put them in medicaid and nursing homes and these kind of things? so if they bring it up, they're really playing with fire not only for the financial side of things, but if you're holding hostage, what do you want them to cut? >> well, from your perspective on the democratic side, the progressive side, there is an opportunity here for the republicans to confuse a lot of people. debt ceiling, government shutdown, you know, a lot of misinformation out there, who to believe, and, you know, a lot of average americans really aren't schooled up on exactly what all of this means. that's why i think that gingrich may have done the country a favor right there by cutting right to the chase on what it would really mean. but what do the democrats have to do in this campaign? >> i

ceiling debate to be died to spending cuts which we desperately needs. he obviously -- he wants a fight. what do you make of the strategy that he's employed. >> i think what's happened to him is he feels that by winning a second term, with a slight addition of democrats in the house and the senate he now is, you know, king of the the world to quote an oscar winner of bygone days. and you noticed in these lists, look at the list of the major appointees, starting with brennan and hagel and these are nobody of independent stature. it's not like the first term where he had a clinton, where he had a gates, where he had people who could be a team of rivals. this is a team of essential, you know, fact totems. he wants to rule and he wants to govern and he will not let anybody stand in his way and i think that's what he's saying and he will take on any fight in order to get his people. he's announcing he wants to govern alone. >> sean: will they get confirmed? >> all of them, yes. i think in the case of hagel, i say the odds he gets a yes vote are about 3-2, a slight advantage. >> sean: all rig

's taking place in america right now. and we're hearing about fiscal cliff and debt ceiling and money here and there and cuts and whatnot. it is about what the republicans want to take from the lower-income americans. that is the issue. and our next guest, bernie sanders, wants action. and so do the american people. i was struck by his essay in the huffington post that was titled "the soul of america." so well put. because folks, this is, as i said, an ideological battle. and the deck is basically stacked against you if you're in the middle class or below that. we're experiencing more income inequality now than we have during any time in a period of history since 1928. the top 1% owns 42% of the country's financial wealth. 1% of americans own 42% of the country's wealth. as for the bottom 80%, they own only 5% of the wealth. yet despite those kinds of statistics, the republicans and the big money donors who back them are aiming for more. we've heard all the rhetoric. we don't have enough revenue. well, wait a minute. we've got too much revenue going in. it's a spending problem. but we all

is over the debt ceiling but also sequestration, and those defense cuts and, look, defense is part of everybody's bread and butter to a certain degree, but really that hurts republicans. they want to play hardball on this, and it could be damaging to their base. >> it could be very damaging. not just to their base, but to the country. especially if it's done in the way that sequestration sort of forces it to be done. no question, as i said before, that the defense budget is really bloated and needs to be taken down, and there's a huge disconnect between what the united states needs to do in the world and the defense budget, which seems to lag two or three decades behind where it should be. so there's a big job to do there. the sequestration and, again, if the republicans force that to happen, just takes a meat clever to stuff you don't want to take a meat clever to. it's against their real interest. >> bloated like the lunch budget for this show. there's a difference between how many salami sandwiches we need and how many we actually eat. >> i feel like we've been purged from that

, no rise in the debt ceiling without an equal number of spending cuts. democrats are saying we're not negotiating with you as all, because as whyte white house press secretary jay carney said look what happened when we tried that in 2011 it resulted in a credit rating downgrade. >> he will not negotiate with congress when it comes to the essential responsibility of congress to pay the bills that congress has incurred. it would be irresponsible to flirt with default. we saw what happened in the summer of 2011 when congress did flirt with default. >> and i think we can conclude from the fiscal cliff debate, maria, is that congress and the white house won't reach an agreement before they absolutely have to, and don't rule out possibility that the white house could yet invoke constitutional authority to unilaterally raise that debt limit if congress is not willing to play ball with them. >> we'll be wag. thanks very much. how far can washington push this debt ceiling fight before damage is done to the economy? an economist with ftn financial joins us and steve liesman, our senior e

with the fiscal cliff fight behind him, the president faces another looming showdown over the nation's debt ceiling, its borrowing limit. today, senate minority leader mitch mcconnell insisted the tax issue is resolved but demanded spending cuts. >> i wish the president would lead us in this discussion rather than putting himself in a position of having to be dragged kicking and screaming to the table to discuss the single biggest issue confronting our future. >> reporter: also tonight, an administration official tells nbc news that the president is likely to name his selection for cia director tomorrow, the person who would replace david petraeus. the two men who are being considered as top candidates right now are the homeland security and counterterrorism adviser to the president, john brennan, and on the left of your screen you see the acting cia head, mike morrall. lester? >> thank you. >>> in addition to the battles over the debt ceiling and cabinet nominations, the president has a lot more on his plate in the coming weeks, including a fight over guns after the tragedy in newtown. and

to have much more leverage here because they're once again threatening not to raise the debt ceiling unless they get spending cuts. i guess my question to you congressman nadlor. you have a proposal, it's not yours, this emanated from a commenter on a blog. but it, i think, pretty sound, actually. explain your proposal, the proposal that's out there that you are now advocating. >> you put it in context first. >> yes. >> the republicans have suddenly invented this notion that we bargained about raising the debt ceiling, to reduce spending in order to get their votes for increasing the debt ceiling. the president said he won't negotiate on that, an he's quite right. what they're really saying is by not raising the debt ceiling, we're not going to pay the bills that we voted to incur. we're going to permit the country to default and cause economic chaos. and destroy the country. they're basically saying we're going to blackmail everybody in the country. absolutely illegitimate. it's like an old gangster movie where someone says, nice economy you got there, it's going to blow up if you d

the debt ceiling. >> reporter: in late february they will exhaust as measures to avoid the fiscal cut. in march out spending cuts take effect. and later the congressional f d funding resolution currently funding the government expires. they don't plan to say anything more about the timing of geithner's departure until after his successor is nominated. now, the leading candidate to replace geithner is white house chief of staff jack lew who was the former director of the office of management and budget. white house sources tells cbs news that the white house hasn't made that decision yet and he's likely to make other cabinet announcements first. >> thank you. let's bring in chief washington correspondent and host of "face the nation" bob schieffer. good morning. >> good morning, norah. >> we just heard about geithner leaving as treasury secretary and all the fiscal fights ahead of us. how does that affect things? >> i think that's going to make it harder if that's possible. geithner will not be there. there will be arguments over fiscal policy that will weigh in to the confirmation of

the ceiling debate came around. and if democrats want, the debt ceiling raise, they should have harry reid produce a budget. >> i don't mean to cut you off. but senator sessions is coming on this show later on. one last one. the boehner rule, you want to raise the borrowing rule i think it is sound fiscally and plitly. >> one to one seems equal right? >> but seems like this deal $41 in tax hikes per $1 in spending cuts with middle class taxes going up, i doubt that we are going to get that either. this president has made clear he not only wants the debt ceiling raised. let's not forget, he wanted the debt ceiling eliminated. that is the kind of negotiating that he is putting forward even though he said he is going to have to negotiate. that is what he said for a long time. if the gop plays his cards right and sticks to the spending see kwaester, i think that will put obama back think the defense. stick around. we have much more cooking for you. but look, i shothought obamacar was supposed to keep costs down. we are going to tell you why. later on, team obama going all out an gun control. i

't lift the debt ceiling, the economy shuts down. not only the u.s. economy, maybe the world economy. the consequences are drastic. look, the bottom line on this, michael, and you know this, nobody should be threatening or rattling sabers. everyone. president obama, harry reid, everyone knows we need significant spending cuts. it's about time we act maturely and get together and try to find out what the spending cuts that we have to make can be made in the least onerous way for the american people. we also need to raise more revenue. the fiscal cliff only raised $600 billion of revenue. we need to raise another $600 billion in revenue and we've got to find a way to do that, as well. >> i constantly, in my role as a talk radio host, hear the spending is out of control. and if this is spun as republicans standing up to all of that spending and saying enough is enough, i think the win could be at the gop's back. >> well, i don't know that the wind is at our back. first of all, governor, nice to see you again. i would tell you that spending is the problem, but where we missed the boat is

it is time to raise the debt ceiling again and we have yet to cut one dime from the last agreement. spending is the problem we have to address that problem. bill: now democrats have shown their hand a little bit where they are on this issue for the next round, the next debate. where are republicans when it comes to spending? >> well, we have laid out several plans. we have done a budget in the house that actually gets to balance. the senate hasn't even done a budget in three years. one of the things i think we should require, okay, senate, before we increase the borrowing authority of this country why don't you actually put together a plan? think about this. i have said this before. think 18-year-old maxes out credit card. first thing you do cut up the credit card and put them on a budget. what this president said no, give me a new credit card. we don't want to do a budget. harry reid has it done one in three years. do a budget and we'll give you a menu of spending reductions you can put in place. you choose, mr. president. some are ones that you suggested. some came from simpson-bowles comm

. but there are still plenty of financial problems for lawmakers to tackle. next up - the debate over the debt ceiling. republicans say they don't even want to talk about it, until president obama is ready to start talking about spending cuts. but as brian todd reports, the president could get the money he needs to keep the government running, without any help from capitol hill. >> the president says that he will not to negotiate with congress over lifting the debt ceiling. >> will not play that game. >> the president might not want to have this debate but he is going to have because this is what the country needs it. >> is there a magic bullet to solve the crisis? " what a magic going. some legal scholars are suggesting a one trillion dollar platinum coin you could be minted. if they could use that to pave the debt. to pay the debt-- and it sounds silly but it is absolutely illegal. >> why do think that it is a a? >> i think that it is better than a government shutdown or the bad alternatives. >> technically it appears to be legal. the u.s. government print money but how much paper can be in circulat

with this debt ceiling and people are starting to talk about cutting back medicare, which is the better bargain, and which is better for the people who need it? >> well, at the end of the day, if you have a medication that can improve the lot of people with these terrible diseases, that is a lot cheaper in the long run than paying for all of the hospital care and other care that you're going to need down the road as these people have their chronic conditions. in fact, investing in good medicines that really deliver value to the patient is an economically important way to go. that's a smart way to go. >> and it has to be the same for cerebral palsy, i have to believe. you've got a 20-person safety and efficacy trial going on right now. you don't know what the results are. but 400,000 people have this. if you have a pill that could make people be more physically in control of their lives, i have to believe that's a bargain for america and it's great for the people. >> couldn't have said it better myself, absolutely. >> now, how about epilepsy? where are we? because when i see someone buying a com

at this in context of what it may mean for the debate on spending cuts as we approach this debt ceiling limit and the fight that is ensuing. tim get near is leaving january 25th. that means lew will be the main point person for this debt ceiling drama. so, what does this mean ahead of what is likely to be another hard fight? perhaps the best clues for that are in an op-ed from two years ago from jack lew. inis entitled "the easy cuts are behind us." the piece absolutely advocates getting out of our debt and getting the debt and deficit under control. but it does so by discussing some cuts in defense and then examples of scaling back things like something called the great lakes restoration initiative. not eliminating it, just cutting it by maybe a quarter of its present cost. a sav

. we are going to see only cuts as sort of an agreement around this debt ceiling. so does that impact certain sectors and earnings? >> maybe. but we're a wash in liquidity again. we're in that type of market. >> yes. >> i think the economy is going to end up being far stronger than people realize. that will take over and overtake the fiscal austerity. however we get there, i don't think we're going to do europe in terms of austerity. we're not doing greece. these guys are not ready to do that type of deal. i doubt the president will get a trillion dollars in tax increases and in spending cuts. >> we'll leave it there guys. final word, jack. go ahead. >> how we get there doesn't matter much. over the weekend they're going after the energy industry. whether they can get that done or not. that's to be determined. but there's some real sector implications as to how we see this austerity measures coming together. >> good point. thanks, gentlemen. we appreciate it. we'll be watching the markets ahead of earnings for sure. >>> more than 250 retail executives rub elbows at the womens summit i

happy? >> it does. i want to see one dollar of entitlement cuts for every dollar the debt ceiling is raised. >> you're not normally this mean, this nasty. >> i'm with you and you inspire me. >> you know what, we are coming together somewhere in the middle. you know what we're doing in a word, two words, we're rising above, dude. you got your pen? get you a pen. we're rising above. where's yours? we'll get you one. >> byron, i want to go through some of your predictions. >> surprises. >> surprise predictions, surprises that could come up over the course of next year. you spend a lot of time trying to figure out what the market's doing and consensus is and where it could be taken off guards in some places. i want you to react. start with number 10, that eu structural problems we main unresolved. when i first heard that, i don't think they will be unresolved. you're right, the market has bid things it's looking like the world is better. >> last year, all the european markets were up and europe was in a semi-recession and all the european markets were up semi-20% and i have them down

, in the context of that dialogue and the need to raise the debt ceiling and the focus now on spending cuts, it will be interesting over the next few weeks to see were corporate tax reform falls out on that conversation. >> i made my way over here. >> david. can you tell us what is your top legislative priority this year? >> we have a lot of priorities. as i mentioned in the earlier comments, the first one is to encourage government and policymakers to do no harm. if we look at the game changing opportunities occurring in the energy area, it is truly revolutionary. so our first council of look to our priority is to say don't do anything that would discourage that investment and economic activity. so when we look at priorities, we first look at issues like regulatory regimes. we look to the congress and say, what else can we do to open up other areas for access? we're not talking about national parks. we're not talking about sensitive areas. we're talking about areas that have potential for vast oil and natural gas development. where the industry would be prepared to invest billions of dolla

at least on the house side. they are going into this debt ceiling debate, though saying we the u.s. -- if we don't cut spending to an equivalent amount, that we're in danger of turning go greece. here is the senator quote . . . so let me -- let me just ask you about that, though. because people often compare the u.s. to greece if in fact we don't slash spending. is that a realistic concern? >> no, for a variety of reasons. first of all greece has been in default about 50% of the time over the last 150 years. the u.s. has never defaulted. number 2, the u.s. government is borrowing at near historic low rates about 1.9% on a ten-year treasury bond. the greek government is borrowing at i think around ten right now, but some time during the past year the cost for greek borrowing on a ten-year basis was in the 40% range. so the rest of the world is saying to us, we believe your economy is strong. we believe you can easily adjust your spending and revenue lines over time to handle that long-term debt problem that is out there. right now the debt to gdp ratio in the u.

with a plan to deal with the debt ceiling and the budget resolution -- yeah. all of this and the fighting holding back america's growth. i'll tell you how to fix it right after this. >>> okay. so the american economy is adding jobs, but not really as robustly as you would want. take a look. you've got an economy that sells 14.4% underemployment rate and 39% of the people who have been out of work are long-term unemployed. that's still a problem. over the last year, the economy adding on average 153,000 jobs each month, well below the 200,000 to 250,000 you really want for a real and durable recovery. want to know why job growth remains so sluggish? look no further than washington, d.c. i want to bring back zanny bedoes, bob herbert. that uncertainty from planning businesses and the hiring. is this the new normal? >> i think it is. i hate to say t i wee have to get used to the fact that wz is in this environment where it will keep kicking the can down the road. it's becoming like europe. i hate to say that. but it's not going to go away. the next two months will be more uncertainty. i susp

of course in negotiations over the debt ceiling and potential spending cuts. the president will make his announcement at 1:30 eastern. it's an event in the east room at the white house. i have to say off the bat just because he's a forest hills guy like me that i, you know, may be a little affinity, we grew up in the same town. >> that alone could be good. >> different generation. >> maybe a technocrat is what's necessary. no one tells me this guy is acrimonious. the talks may have been. but when we're trying to figure out what to cut, maybe you just need a guy who knows his way around the budget as opposed to a federal reserve guy. i thought tim geithner did a great job, though, and i know i find myself in the minority on that, but he came to the rescue of the system in apparel husband time and i think he good a remarkable job. >> jack lew is well respected by both sides of the aisle. and also portrayed as chief tormenter to the republicans. bob woodward in his book quoted john boehner saying jack lew said no 999,000 times out of a million and then he corrected himself 999,999 out of a

to him on the debt ceiling, on the question of entitlement cuts, et cetera, et cetera. even perhaps reforming the tax code. we don't know if they're going to get to that. he had to have somebody he trusted there just the way that ronald reagan felt he had to have somebody he trusted at the treasury. and i think it's the -- the same situation. also what's interesting here about jack lew, not only is he well known among congressional democrats, particularly senior congressional democrats because he was on the hill himself. he also had a role in hillary world, don't forget, at the state department. he was a deputy secretary of state in charge of the huge, huge state department budget. so he knows people over there very well, and he also obviously knows people in this administration very well. not only as chief of staff but as former budget director. and again, i can't emphasize enough the number of people inside the administration who said to me, the president feels comfortable with jack lew, and he trust jack lew. if you look at all of these cabinet appointments that we've seen and so

't quite know what it's going to do in terms of bargaining around the debt ceiling limit. they've got a situation where th they're obviously talking about cuts. but one of the problems is people don't really wants cuts. and, also, i think the other reality is if you look at what's happened so far, i think we've cut out quite a bit. revenue that's come in so far, actually, i think it's been a third or fourth of that. so thal eve got a real challenge going forward in terms of what are we going to speak with. >> michelle, as long as it's out there where you have some just overtly saying shutdown is good, i'll do shutdown. don't we need the leadership like mcconnell to say unequivocally, we're not talking about a shutdown nou. it's not a good thing. even nut gingrich, the architect of the shutdown in the '90s says it's not good. it makes one wonder are the others speaking in a set or tone that they can use as an option and that that would be disastrous for this country and the economy. >> i think if the cliff negotiations taught us anything, you can't listen to the hardline luster this ea

voter's card if the debt ceiling is raised without comparable spending cuts. the physical cliff was 41-1. i will not vote again in this country if it comes up to that. guest: do not give up on voting. that is one thing i beg you not to do. the debate over the first fiscal cliff, is something that this congress has set upon themselves, these fiscal cliffs. i think there are some really good ideas and proposals by the president to make some significant cuts. democrats and republicans are going to sit down and try to find answers for our economic situation. we have to do it. the good news, i believe, is that we have a lot of new members. i'm proud to say we have a lot of new democratic women that will be in discussions, " like senator warren, tammy baldwin. it corrects and on the leadership side, who are the ones to watch as far as -- host: and on the leadership side, who are the ones to watch? guest: we have a woman on the budget committee and of course, nancy pelosi on the house side. as you mentioned earlier, the new congressman from phoenix, ariz., when she was growing up, she lived i

with the debt ceiling is this is again playing roulette. what they have to do is they have to have a caucus united on a simple demand. whatever it is, $1 in spending cuts for every $1 in debt increases, a balanced budget amendment, but something. they also made a tactical throw back. if they do not, they will get rolled. advice is' thoughtful, but when asked if they would expect -- accept $10 for $1, everyone said it was unacceptable. we are in a position where we'd like to take tough positions but we do not like to make tough calls. >> i think we will see something inherently different. i think the president is serious when he says he will not negotiate over the debt ceiling. he should not. this is something that is artificial. >> will the new congress make a difference? more women, more latinos, gays and lesbians. will the makeup of congress make a difference? >> if anything, congress is more polarized because of redistricting. this is part of the problem. >> you do not see a ted cruz of texas and elizabeth warren coming to terms over legislation? >> i doubt it. there's another thing here

, which are across the board cuts, but he is not going to be politically blackmailed over the debt ceiling. with respect to the sequester, replacing it, we need to continue to follow the same pattern that we did with respect to the fiscal cliff. in other words, and last year. last year we had 1.5 trillion dollars in cuts. we'll have to do additional cuts, but it will have to be combined with additional revenue from eliminating a lot of these tax breaks and loopholes that benefit high income individuals. the same kind of tax breaks and loopholes, by the way, that mitt romney and paul ryan talked about during the last campaign. >> now, one of the changes that politico has been writing about today in a profile of congressman cotton, tom cotton, one of the freshmen, is that you've got congressman like tom kolton that is a harvard law graduate. when it comes to congress having been supported in the primary by the club for growth, cho gave $300,000 plus. so he has no loyalty to john boehner or to the party. he has loyalty to those who supported him. and those that want to take a posture on those

another thorny issue this year. president barack obama wants to raise the debt ceiling, that's the limit of how much the federal government can borrow. members of congress need to reach a deal by the end of next month. >>> students who survived a mass shooting at a school in connecticut have endured a rough few weeks. they went back to class for the first time since the attack. about 400 students arrived at an unused junior high school. they are using the building at a neighboring town as their new campus. their old school remains closed. a gunman entered sandy hook elementary last month killing 20 of their school mates and six adults. the attack prompted president barack obama to push for tighter gun control. he suggests he wants to ban assault rifles and strengthen background checks. a recent poll suggests many americans still oppose a ban on the sale of assault rifles. the national rifle association carried weight across capitol hill and many republicans too are against further restrictions. >>> al jazeera has set its sights on one of the world's biggest tv markets, the united states.

the federal deficit, spending cuts, the debt ceiling. it's the last -- if the last congress had so many challenges producing a bill to avoid the fiscal cliff, do you think this congress will be more productive, and if so, why? >> you know, i think that remines to be seen. i think that, again, that congressmen need to hear from their constituents and people need to know that hey, we sent you guys up there to get to work. we mean business. stop all -- all of the partisan bickering. of course, republicans and democrats are always going to have differences on issues, but things of this nature that could cause economic catastrophe, those sorts of things, we should be able to work a lot easier on. and that's why i'm up here. i want to work with my republican colleagues. i've reached out to all of my republican colleagues in the north texas area to let them know that i want to work with them, and i will continue to reach across the aisle, all across the congress with -- working with republicans because i know that it is very important that we do a better job of workiwork ing -- of working toge

two months before they raised the debt ceiling on risk. the president says the debt limit needs to rise. republicans say the president isn't willing to cut spending he will get a debate whether he likes it or not. some are proposing using one trillion dollars to pay this year's budget deficit. those against the coin idea... mike quickly snagged an influential assignment in the new congress. he will be the only member from illinois to serve on that panel. in an attempt to reach a compromise on pension reform in illinois willing to back off a proposal that will shift pension costs for suburban in downstate teachers. quinn says that he hopes madigan ships on who pays the pension costs will lead to a breakthrough on a pension reform. quentin and legislative leaders are scheduled to meet tomorrow afternoon to discuss pension reform it's believed it's sometimes easier to pass it difficult legislation in this waiting days of the session. the head of chicago immunizations will talk to us on how it looks so far. a pilot arrested moments before his plane was supposed to take off what poli

the tax cut. president obama has said he will not negotiate with republicans over raising the debt ceiling. and yet they say that he's going to have to and they're going to make commands on him if he wants to raise it. are liberals going to say that obama is caving way too soon? >> he's already caved. already by allowing this to go to another day, that was a cave-in. we've heard him say how many times he won't negotiate with republicans. i love this idea. and i think you know, people are saying it is crazy but the other side what they're going to do is very, very crazy. but the president doesn't like to do things like this. and i can't see him actually doing it. >> john: going big? >> i can't see it happening. >> john: let's move on to another fight the president is about to face, the nomination of chuck hagel former republican senator from nebraska, for secretary of defense. rick, what makes chuck hagel harder to get confirmed? his anti-gay comments from 15 years ago his reference to the jewish lobby or the fact that obama likes him for the gig? >> probably the last. because this is all a

. they have not only those spending cuts that were delayed as part of the fiscal cliff, they have the debt ceiling to deal with and now these nominations of chuck hagel and john brennan over to the defense department and cia. so now, it is a question of how much time they have, but a lot of people will be watching, does harry reid make that time? >> some states are taking this one step further, proposing state laws that would make it criminal for a doctor like yourself to ask a patient. you could lose your medical license for asking, is that correct? >> yeah, it was even more than that in the original version of the bill down in florida, for example. and there are seven other states like this. the original version is that you could impose jail time for simply asking. so a physician asking a patient about guns could land them in jail, according to the original version. there was a scaled back version that was subsequently put forward, that you could still lose your medical license, you could get financial penalties. that was subsequently overturned by a federal judge, but it's being appeale

the debt ceiling and hold people hostage because you know you have to increase that, he says that is, quote/unquote, a dead loser. here he is. >> in the end, you know it's going to happen. the whole national financial system is going to come into washington by television and say, oh, my god, this would be a gigantic heart attack, the entire economy of the world will collapse, you guys can't be responsible, and they'll cave. >> so are republicans making a strategic mistake here, doug, to even use the debt ceiling as leverage since we all know they will end up having to raise it? >> they will have to raise it. the president's going to have to raise it, and the debt ceiling is not the problem. the problem is the debt and the spending that's driving the debt. and so the number one thing is to avoid, "a," the notion that speaker boehner can trot down to the white house and somehow we can solve the nation's problems or, "b," that we want do this at the 11th hour at all. instead we want our congress and our president to do their job. and i for one believe that in moments like this, presidential le

to have a debate with congress over raising the debt ceiling and making sure america can pay its bills, but as we saw the last time, that's not really up to the president. >> yeah, now, first thing's first, the house taking up the sandy aid bill today. how is this different than what they've considered before or haven't considered before? >> well, the thing is the senate already passed a bill. what the house is doing is breaking it into two pieces. after they reached that big deal to avert the fiscal cliff, postpone it, really, a lot of house republicans, especially from new york and new jersey, were angry the speaker did not put on the floor a vote for sandy aid for these relief victims. they're going to vote later this morning on a bill. about $9 billion for the national flood insurance program. that's to be able to give money to that program so it doesn't run out. fema has said that money would run out starting next week at some point. the idea is to vote on that today and then on january 15th they'll vote on another $51 billion in general aid. so today's the first of two votes. >>

. first, the debt ceiling. that is still out there. we still have to deal with the debt ceiling probably late february, early march. negotiations will start over the debt ceiling almost instantly. but wait, there's more. what about the sequester, those budget cuts? they did a two-month delay. starting march 1st you'll have the same budget cuts and spending cuts you'll have to deal with. wait, there's more. you want more? here is the fourth quarter, funding for the federal government which runs out march 27th. there you go. another fight between democrats and republicans. >> i was hoping we could stop using the word cliff. it seemed like every seventh word out of my mouth was cliff. what else is in the spotlight? >> a couple of big things on the president's to-do list, i guess you could say, besides these budget issues. first up, gun control. after the tragedy in newtown, connecticut, shootings at the elementary school in sandy hook up there, there's now a new push by the president on gun control. the congress is leading a task force, expected to come out with recommendations on what to d

:00 tonight. as you pointed out, the next fiscal matter will be debt ceiling republicans for some time now, and have been promising a fight, saying they want those spending cuts in exchange for raising the at the time ceiling. but the president for a number of days now, and certainly in the most recent time here, his weekly address, has said that he is not willing to compromise on this. and will not negotiate. >> one thing i will not compromise over is whether or not congress should pay the tab for a bill they have already racked up. if congress is to give the united states to pay its bills on time, consequences for the entire global economy could be catastrophic. last time congress threatened this course of action, our entire economy suffered for it. our families and our businesses cannot afford that dangerous game again. >> reporter: in addition to that, the president has also promised he wants to tackle immigration reform and gun violence in the wake of the shootings in connecticut. so a lot on the president's plate as he heads back to washington. >> and also think, the cabinet, secreta

. and the possible default of the government when the country reaches the debt ceiling. house speaker john boehner, who was re-elected, despite rebellion among some conservatives, says he hopes the new congress will rise to meet the country's extraordinary challenges. rob and paula? >> only time will tell. should be interesting, as always. tahman bradley, live in washington. thanks, tahman. >>> and there was a moment of bipartisanship, believe it or not. dozens of democrats and republicans, cheering on illinois senator, mark kirk. nearly a year after suffering a major stroke, kirk made the slow climb to the front door of the senate, with a little help from the v.p. and another colleague. he conquered all 45 steps. we'll take a look at some of the other memorable moments, coming up in just a minute. >>> and a special visitor comes to newtown, connecticut, today. former congresswoman gabby giffords is meeting with families of the 26 school attack victims. meantime, the school's children head back to class for their second day today in a new building, amid very tight security. abc's amy robach report

face big questions on spending and another so-called crisis moment with the next debt ceiling vote. let's start with the debt ceiling. president says he's not going to negotiate. so how far will house republicans push on this vote to try to leverage spending cuts? >> i think they're going push pretty far. you know, as the conservative "wall street journal" editorialized yesterday, "the wall street journal" giving house with republicans some advice, they said don't take a hostage you aren't prepared to shoot. and i think that that's the view among a lot of republicans in the house that they're not going to take this hostage, the debt ceiling, unless they're prepared to hit it. and remember last time we went through this, there were quite a few republicans who actually argued that it would be okay to hit the debt ceiling, that it wouldn't be as catastrophic as the white house and the treasury department and most economists believe. so i think it's -- i think it's very real, and when you have a senator like john cornyn threatening to shut the government down, we're in for a pretty serious

to extend the debt ceiling or we default on our debt, and it's cataclysm cataclysmic. i hope and i pray after the inauguration that people reach across the aisle. we're going to have to cut defense. we're going to have to increase the eligibility for entitlements and perhaps cut back on the automatic cost of living increases. we're going to have to do tough things, shared sacrifice and that's going to have to happen and legions of lobbyists surrounding washington in the next couple of weeks, ought to be the folks that ought to be put on the back burner and people, reasonable people on both sides of the aisle are going to have to resolve this. we have to quit spending as much money as we're spending, we all agree, democrats and republicans. the problem is we've got special interest people that don't want, it's not in my back yard. they don't want to have theirs-- >> the people who like this, apparently some blogger he, it was a comment on one blog how this idea got born, but now it's picking up steam in some circles and asking jay carney about it. he didn't endorse it, but it's interesti

house believes he does not have. >> congress has the responsibility and sole authority to raise debt ceiling. >> 20 house democrats sent a letter to the president about house republicans withholding support without the spending cuts and they won in the event they follow through on this reckless threat we support the use of 14th amendment. the 14th amendment says the validity of the public debt shall not be questioned. leader of the house democrats urged the white house to ignore congress in this case. >> i would do in a second. i'm not the president of the united states. >> the house republican leadership aide says democrats refuse to responsibly address the spending problem and rather than offer solutions they choose to advocate their responsibility. speaker boehner and the house g.o.p. leadership team said the debt limit must be accompanied by reform in greater amount. >> we need spending cut and real tax reform to address the long-term debt problem and pave the way for long-term growth and real growth in jobs in our country. >> with the white house insisting it won't negotiate on

thought the fiscal cliff was nasty, just wait till you see how congress handles spending cuts and the debt ceiling. we'll talk to a republican congressman who actually supported the fiscal cliff deal and find out how he thinks the other deals are going to get done. >>> when it's okay to alter the historical accuracy of an official photograph. apparently when it's very cold outside. passengers on board a flight from iceland to new york find a unique way to stop an unruly passenger. we'll tell you what they did in a moment. the boys use capital one venture miles for their annual football trip. that's double miles you can actually use. tragically, their buddy got sacked by blackouts. but it's our tradition! that's roughing the card holder. but with the capital one venture card you get double miles you can actually use. [ cheering ] any flight, anytime. the scoreboard doesn't lie. what's in your wallet? hut! i have me on my fantasy team. is a fantastic experience. 30 shrimp for $11.99. i can't imagine anything better. you're getting a ton of shrimp, and it tastes really good! [ male announcer

the only way we'll raise the debt ceiling is if we get the cuts we want in social security and medicare which as you pointed out they'll come back with that. do you think the president would have the authority under the 14th amendment to raise the debt ceiling on his own without waiting for congress? >> yes i do believe it has the authority but unfortunately the president made it clear he will not use the authority. i don't know whether he really believes he has it. he has made it clear he won't do it. >> bill: too bad. it would have been nice to see him issue that threat. >> peter: congressman, i want to ask you about a topic that's been gaining traction here in recent weeks. >> bill: one way to solve the debt ceiling problem. >> peter: one way to solve the debt ceiling problem is for the treasury to create a coin and deem it worth $1 trillion. it is the mint a coin campaign and use that to pay down our deficit. the white house yesterday was asked about it. they didn't rule it out. what's your take on that, congressman? is that something that we could possibly look at and even go down

months and the possible the fault of the government when the country to the debt ceiling. house speaker john boehner, despite rebellion g some conservatives, says that he hopes the new congress rise to meet the country's extraordinary challenges. tahman bradley, abc news, washington. >> 33 degrees on this friday morning. >> still ahead, if you thought favorite singer could hold a note. until you hear one of you were singing "hail to the redskins." >> and a decision on whether redskins." >> and a decision on whether -- google fav man: at turbotax, we know this is more than a paycheck. we know all the hammering, dg,ving, writing, nursing, and teaching it took to earn it. so we give you the power to keep as much of your hard-earned money as possible. our customized interview covers everything from a service member's deployment, to a student's loan interest, right down to a teacher's crayons. you've worked hard to earn your money. we're here to help you keep it. turbot t-- the power to keep what's yours. try it free at turbotax.com. haaaaaaaaaaaaaaaaaaaaa ail e]olding a not to the redskins

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